GBP/USD continues with its bleeding; now at 1.5775

FXStreet (San Francisco) - The Sterling continues to fall against the US dollar following disappointing reports on UK CPI and speculation that the Bank of England will delay any rise in interest rates. The GBP/USD extended its decline below 1.5790 and reached its lowest point since September 2013 at 1.5775.

Currently, GBP/USD is trading at 1.5784, down -0.84% on the day, having posted a daily high at 1.5943 and low at 1.5776. The hourly FXStreet OB/OS Index is showing oversold conditions, alongside the FXStreet Trend Index which is slightly bearish.

GBP/USD sentiment

According to ANZ analysts Amber Rabinov & Brian Martin, "The BoE was unambiguously more dovish in its November Quarterly Inflation Report." Including a downgrade in inflation forecast and a softening in the outlook of the GDP, "prospects for a H1 2015 rise in the bank rate have been reduced. This is negative for sterling near term and will act as a constraint on GBP vs USD, AUD and NZD".

A daily close below previous 14-month low of 1.5790 would be a bearish signal. FXStreet chief analyst Valeria Bednarik comments that the GBP/USD is "pressuring the key midterm strong static support around 1.5770." A break below this level, "should open doors for some further slides in term, eyeing then the 1.5500 figure as next probable target."